Which of the Following Is Correct When Both Divisional and Functional

question 42

Multiple Choice

Which of the following is correct when both divisional and functional structures exist in an overlapping fashion, allowing for dual focus?

• A) functional structure
• B) divisional structure
• C) matrix structure
• D) vertical structure
• E) geographical structure

---

Definitions:

Multiple IRRs

The situation where a project has more than one internal rate of return, occurring due to unconventional cash flows.

Reinvestment Assumption

The theory that cash flows will be reinvested at a constant rate, often used in financial modeling.

Cost of Capital

The rate of return that a business must achieve in order to generate value, representing the opportunity cost of investing capital in a specific business rather than in an alternative venture.

Average Return

A statistical measure representing the mean outcome or yield from an investment over a given period of time.